Britain has now voted to leave the European Union and the most prominent effect Americans will experience from this decision is the predication that interest rates will remain at all-time lows for an extended period of time. This comes at a time when rates are already 17% lower than the median of this decade.

So what does this mean for homeowners and homebuyers? It means now is the best time to lock in your mortgage rate because experts predict these rates will rise within the coming year. According to The Washington Post, rates are currently at all time lows, but are predicted to increase by about .5% by the end of 2016 and will continue to rise potentially over a 1% rate increase by December 2017. Real estate analysts predict these low rates will cause a large increase in refinancing activity.

Low mortgage rates have had a large impact on both home buying and refinancing. From the end of March through the beginning of June we have seen a 17% increase in mortgage applications. This is not solely due to refinancing; we have seen about a 27% increase in new purchase applications. This increase means more people are buying new homes in addition to refinancing old mortgages, which is representative of economic growth.

Whether you are looking to refinance your mortgage or purchase a new home, now is the perfect time to submit a mortgage application. It is recommended that refinancers submit all necessary documentation as soon as possible so your application is accepted quickly. This will allow you to take advantage of the lowest rates possible. For more information on today’s mortgage applications, talk to one of our home mortgage specialists today!